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Perhaps people feel overtaxed, not in absolute terms, but relative to the services provided? The US Gov collected approximately 3.3T in revenue in FY2016--more

by jwess 8y ago

Perhaps people feel overtaxed, not in absolute terms, but relative to the services provided? The US Gov collected approximately 3.3T in revenue in FY2016--more than $10,000 for every person in the country. By comparison, the Netherlands collected 255B Euros from a population of 17M, or about $17k USD per person (2016 figure, according to OECD statistics). Clearly, a much higher number at the federal level, but they have a much lower average provincial tax (~$1,500) compared to the average state tax in the US, which varies widely, but averages out to about $4,800, bringing the totals to ~$14,800/person in the US, vs ~$18,500 in the Netherlands. Yes, the Dutch pay a 25% premium, but in my opinion they get a good ROI for their tax dollars. I think the issue of ROI is a major barrier to increasing tax rates in the US.

sykhic 8y ago
Yes, clearly the return on services and government investment is quite poor in the U.S. It's a situation in which people reasonably believe that paying more in taxes is throwing money at the problem. This is especially so when one of the major parties actively seeks to prove that government is incompetent.
adventured 8y ago
A great comment. Usually the US state taxation is ignored when making comparisons. You need to go further however, as the vast budget deficit is ultimately an inflationary tax on the US people (we'll follow the Japan scenario, and debase the dollar to deal with it over time, hammering the standard of living). You can see that represented by the dramatic damage to the US dollar during the Bush deficit years, which simultaneously sent the dollar plunging, commodities soaring and all other nation GDP figures soaring (when priced in dollars). Total spending is about $7.1 trillion, between Federal + State + Local. What kind of return are Americans getting for their $22,000(!) per year? An absolutely horrendous return, that's what. The US state + local spending is like an entire extra Federal Government stapled on. I'm not concerned with slashing spending as some are, I'm overwhelmingly concerned about using that spending effectively instead. There's vast progress to be had in focusing just on that.

by jwess 8y ago

sykhic 8y ago

Yes, clearly the return on services and government investment is quite poor in the U.S. It's a situation in which people reasonably believe that paying more in taxes is throwing money at the problem. This is especially so when one of the major parties actively seeks to prove that government is incompetent.

adventured 8y ago

A great comment. Usually the US state taxation is ignored when making comparisons. You need to go further however, as the vast budget deficit is ultimately an inflationary tax on the US people (we'll follow the Japan scenario, and debase the dollar to deal with it over time, hammering the standard of living). You can see that represented by the dramatic damage to the US dollar during the Bush deficit years, which simultaneously sent the dollar plunging, commodities soaring and all other nation GDP figures soaring (when priced in dollars). Total spending is about $7.1 trillion, between Federal + State + Local. What kind of return are Americans getting for their $22,000(!) per year? An absolutely horrendous return, that's what. The US state + local spending is like an entire extra Federal Government stapled on. I'm not concerned with slashing spending as some are, I'm overwhelmingly concerned about using that spending effectively instead. There's vast progress to be had in focusing just on that.